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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: May 9, 2000
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(Date of earliest event reported)
MetLife, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-15787 13-4075851
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(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification No.)
One Madison Avenue, New York, New York 10010-3690
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(212) 578-2211
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Item 5. Other Information.
On May 9, 2000, MetLife, Inc., a Delaware corporation, issued a press
release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
Item 7. Exhibits.
99.1 Press Release of MetLife, Inc., dated May 9, 2000.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
METLIFE, INC.
By: /s/ Gwenn L. Carr
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Name: Gwenn L. Carr
Title: Vice-President and Secretary
Date: May 10, 2000
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EXHIBIT INDEX
Exhibit
Number Exhibit
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99.1 Press Release, dated May 9, 2000.
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Exhibit 99.1
Contacts: For Media: Kevin Foley
(212) 578-4132
For Investors: Eric Steigerwalt
(212) 578-8670
METLIFE ANNOUNCES FIRST QUARTER 2000 RESULTS
NEW YORK, May 9, 2000 - MetLife, Inc. (NYSE: MET) today reported a 20% increase
in after-tax operating earnings to $379 million for the quarter ended March 31,
2000 from $315 million for the same period in 1999. After-tax operating earnings
exclude net realized capital gains and losses. On a pro forma basis, which
reflects the company's initial public offering held on April 5, 2000, diluted
earnings per share for first quarter 2000 were $0.48. Quarterly highlights
include the following:
- - Individual Business premiums and deposits rose 37% to $3.6 billion from
$2.7 billion for the year ago period.
- - Institutional Business premiums, fees and other revenues rose 13% to $1.9
billion from $1.7 billion for the prior year period.
"Our sales momentum continues to be strong and we are pleased with our operating
results," said Robert H. Benmosche, chairman and chief executive officer. "In
addition, we are excited that MetLife's individual sales force results continue
to reflect the ongoing transformation of our retail operations into a leader in
the broader financial services arena."
Total assets under management at March 31, 2000 were $429 billion compared with
$361 billion at March 31, 1999.
Net income for the quarter was up 3% to $236 million compared with $229 million
for the first quarter 1999. Net income includes operating earnings, investment
losses of $72 million compared with $47 million for the prior year period,
demutualization expenses of $41 million compared with $8 million for the prior
year period and surplus taxes.
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SEGMENT RESULTS
The Individual and Institutional Businesses contributed 89% of the company's
first quarter operating earnings. MetLife Auto & Home, Reinsurance,
International, Asset Management and Corporate segments contributed the balance
of first quarter operating earnings.
Individual
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Individual Business operating earnings for the quarter increased 10% to $196
million compared with $178 million in the year-ago period. Ongoing expense
initiatives, coupled with continued top-line growth, contributed to earnings
improvements. Total first year life insurance premiums and deposits were $202
million, up 44% from first quarter 1999. First year premiums and deposits for
variable and universal life insurance products were $127 million, up 31% from
the same period in 1999. Annuity deposits were $1.5 billion, up 42% over the
prior year period. The Individual Business sales forces sold $1.5 billion in
mutual funds, compared with $900 million in first quarter 1999. These results
reflect continued sales growth from the company's existing distribution
channels, as well as contributions from the GenAmerica Corporation businesses
MetLife acquired.
Excluding the contributions from GenAmerica, total first year life insurance
premiums and deposits were up 13%, first year premiums and deposits for variable
and universal life insurance products increased 25% and annuity deposits rose
23% versus the prior year period.
Institutional
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Institutional Business operating earnings were $140 million for the first
quarter, down 9% from the year-ago period. This comparison reflects
extraordinary underwriting results in the first quarter 1999 which were
partially offset by reduced expenses in the first quarter 2000. Premiums and
fees for the non-medical health and other category increased 31% to $507 million
during the quarter from $388 million. This increase was fueled by continued
growth in mid-market dental and disability product sales as well as significant
small business product sales growth. Group life premiums and fees were $1.1
billion, slightly up from last year's quarter.
Auto & Home
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MetLife Auto & Home earned $8 million for the first quarter 2000 compared with
$6 million for the same period in 1999. This segment includes the standard
personal lines operations of The St. Paul Companies, which MetLife acquired in
September 1999.
Reinsurance
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As a result of the acquisition of GenAmerica and its 58% ownership interest in
its subsidiary, Reinsurance Group of America (NYSE:RGA), MetLife established a
reinsurance segment in the first quarter. RGA is one of the largest life
reinsurers in the United States. MetLife operating earnings from this business
segment were $22 million for the quarter.
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- 3 -
International
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In the first quarter, operating earnings from international operations were $10
million, up from $1 million from the year-ago period. This increase was due to
lower start-up expenses in the first quarter and higher core earnings growth.
With operations in 10 countries worldwide, the company's global strategy is to
focus operations in growing markets such as the Asia/Pacific region, Latin
America and select European countries.
Asset Management
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Operating earnings for the asset management segment were $11 million for first
quarter 2000, down from $14 million in the year-ago period. This segment, which
managed $219 billion of assets at March 31, 2000, is comprised of the following
franchises: State Street Research and controlling interests in Nvest Companies,
L.P. and Conning Corporation. On April 19, 2000, MetLife acquired from the
public all the shares of Conning it did not already own.
CORPORATE EVENTS
On August 26, 1999, MetLife agreed to acquire GenAmerica, parent company of
General American Life Insurance Company and its subsidiaries. This acquisition
closed on January 6, 2000. This transaction offers MetLife the opportunity to
expand the distribution reach of Individual Business and adds another strong
brand to the MetLife family. As a holding company which owns General American
Life Insurance Company, GenAmerica's subsidiaries also include RGA and Conning.
On April 7, 2000, the company raised $4.9 billion in net proceeds following the
completion of the initial public offering and private placements of MetLife,
Inc. common stock, as well as the initial public offering of MetLife Capital
Trust I (NYSE: MIU) 8.00% equity security units. Upon the completion of the
offerings, MetLife, Inc. had 786.2 million common shares outstanding.
MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of
insurance and other financial services to individual and group customers. The
MetLife companies, with $429 billion of assets under management at March 31,
2000, serve approximately nine million individual households in the U.S. and
companies and institutions with 33 million employees and members. It also has
international insurance operations in 10 countries.
# # #
This release contains statements which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are not guarantees of future performance. Actual
results may differ materially from those anticipated in the forward-looking
statements as a result of risks and uncertainties including: changes in interest
rates, declines in securities markets and the effect on sales of investment
products and on our investment portfolio, competition, litigation, differences
between actual claims experience and underwriting and reserving assumptions,
downgrades in our or our affiliates' ratings and the risk factors described from
time to time in our filings with the Securities and Exchange Commission,
including our S-1 registration statements.
For a copy of our Quarterly Financial Supplement, please visit our Web site
www.metlife.com.
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MetLife, Inc.
Consolidated Statements of Operating Earnings
Unaudited
(Dollar amounts in millions)
<TABLE>
<CAPTION>
Three months ended March 31,
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2000 1999
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<S> <C> <C>
Premiums and fees $ 4,329 $ 3,255
Net investment income 2,784 2,310
Other revenues 665 454
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7,778 6,019
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Policyholder benefits, claims and dividends 4,515 3,523
Interest credited to policyholder account balances 697 610
Other expenses 1,979 1,401
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7,191 5,534
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Operating earnings, before provision for income taxes 587 485
Provision for income taxes 208 170
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OPERATING EARNINGS $ 379 $ 315
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</TABLE>
MetLife, Inc.
Financial Highlights
Unaudited
(Dollar amounts in millions, unless otherwise noted)
<TABLE>
<CAPTION>
At At
March 31, December 31,
2000 1999
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<S> <C> <C>
Balance Sheet Data:
General account assets $ 179,938 $ 160,291
Separate account assets 76,110 64,941
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$ 256,048 $ 225,232
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Policyholder liabilities $ 138,533 $ 124,955
Short-term debt $ 3,585 $ 4,208
Long-term debt $ 2,793 $ 2,514
Retained earnings $ 14,336 $ 14,100
Total equity $ 14,016 $ 13,690
<CAPTION>
At or for the three months
ended March 31,
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2000 1999
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<S> <C> <C>
Other Financial Data:
Operating earnings $ 379 $ 315
Net income $ 236 $ 229
Total assets under management (billions) $ 429 $ 361
Sales Data:
Variable & universal life first year premiums & deposits $ 127 $ 97
Total first year life premiums & deposits $ 202 $ 140
Total annuity deposits $ 1,509 $ 1,059
Mutual fund sales $ 1,467 $ 922
Earnings per Share Calculation:
Pro-forma shares outstanding-diluted (millions) * 786.2 n/a
Pro-forma operating earnings per share-diluted * $ 0.48 n/a
</TABLE>
Note*: MetLife, Inc.'s initial public offering took place on April 5, 2000.
March 31, 2000 earnings per share and shares outstanding are pro-forma for the
IPO.
